The Rise and Rise of BESS in the Middle East
Around five years ago, we published an article highlighting the relatively slow pace of battery storage deployment across the Middle East compared with Australia, the United Kingdom and the United States. We identified a number of contributory factors, including limited liquidity in power trading markets and hesitancy( notably among lenders) regarding the reliability of what was then a nascent technology, particularly given the extremes of heat and humidity in the region.
At the time, we took the view that battery storage would nevertheless become a critical component of the energy transition in the Middle East, especially when considering the region’ s position at the vanguard of global renewable energy development. That process has taken longer than we expected. But in 2025, the Gulf markets have embraced utility-scale battery storage in the only way they know how: by procuring some of the largest projects in the world.
The Middle East market also differs to other market where we have advised on the development and financing of BESS projects in that to date the projects have not facilitated“ revenue stacking”, which is one of the key attractions of BESS projects in other jurisdictions as it allows developers to benefit from multiple revenue streams.
We have advised developers bidding to deliver the 400 MW BESS 1 project, procured by Emirates Water and Electricity Company in Abu Dhabi, as well as bidders for the four 500 MW G1 BESS projects procured by Saudi Power Procurement Co. in Saudi Arabia. Towards the end of the year, we have been engaged in relation to the DEWA 7 project in Dubai, which incorporates 1,400 MW of battery storage. The support of the region’ s major procuring authorities, as they seek to underpin massive renewable energy build-out, has been the single most important factor driving the rapid rise of battery storage across the Middle East. mega projects to financial close. For reasons of cost, some or all of them will be procured on a split contract basis, with separate battery supply and balance of plant agreements. There is a tension between the demands of lenders( and, to a lesser extent, developers), who typically favour a‘ wrapped’ construction solution and those of suppliers and contractors( predominantly Chinese) who have been resistant to assuming any degree of interface risk.
Recent Notable Matters
• EWEC BESS Project— advising the lenders to Engie’ s bid for the 400 MW / 800 MwH BESS project, in Abu Dhabi
• SPPC G1 BESS Project— advising the lenders to Engie’ s bid for the 2,000 MW / 8000 MWh Group 1 BESS projects in the Kingdom of Saudi Arabia
• SPPC G1 BESS Project— advising the X-Elio led consortium in relation to their bid for the 2,000 MW / 8000 MWh Group 1 BESS projects in the Kingdom of Saudi Arabia
• DEWA 7— advising the Masdar led consortium in connection with its bid for a 2 GW Solar and 1.4GW BESS project in Dubai
• North Oman Solar PV 100MW IPP( inclusive of 10MW battery energy storage system)— advising TotalEnergies Renewables and OQ Alternative Energy LLC with respect to its successful bid for this captive solar IPP under procurement by Petroleum Development Oman LLC( PDO) pursuant to a“ Block 6” petroleum concession granted by virtue of Royal Decree 15 / 05, operated by PDO
The Year Ahead
There is little doubt that this issue will be resolved though the first wave of projects, establishing precedents that will shape battery storage deployment across the region for many years to come.
So what does 2026 have in store for battery storage in the region? The immediate challenge will be to progress these
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